RWP6-1 (Algo) Great Adventures Continuing Case [The following information applies to the questions displayed below.] Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2025 . All watches are sold for $508 each. July 17 Purchased 58 watches for $9,164 ( $158 per watch) on account. July 31 Sold 48 watches for $24,384 cash. August 12 Purchased 48 watches for $8,064 (\$168 per watch) cash. August 22 Sold 38 watches for $19,304 on account. Septenber 19 Paid for watches purchased on July 17. 0ctober 27 purchased 27 . Ratches for $15,664. $13,800 for watches 50 dd on account on August 22. November 20 Sold 98 watches for 449,784 , 564 ( $178 per watch) cash. Necember 20 Sold 98 watches for $49,784 cash. December 8 Pold 48 watches for $24,384,808 (\$188 per watch) on account. December 8 Sold 48 watches for $2,4,384 on account. RWP6-1 (Algo) Great Adventures Continuing Case Part 2 2. Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the MU watch, the MU II watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videos off the Internet. The demand for the original MU watches is greatly reduced. As of December 31 , the estimated net realizable value of MU watches is only $108 per watch. a. Record any necessary adjusting entry on December 31, 2025, related to this information. b. For what amount would MU inventory be reported in the December 31,2025 , balance sheet? c. Prepare an updated gross profit section of a partial income statement accounting for this additional information